KraneShares KSTR ETF Provides U.S. Investors Access to Cambricon, Dubbed "China's Nvidia," During 2025 Surge
Cambricon's Performance: Cambricon Technologies has seen a remarkable 111% increase in share value in 2025, driven by a staggering 4,347.8% year-over-year revenue growth and a turnaround from a significant net loss to a net profit of RMB 1.04 billion in H1 2025.
Investment Opportunities: U.S. investors can gain exposure to Cambricon and other STAR Market companies through the KraneShares SSE STAR Market 50 Index ETF (KSTR), which has also performed well, rising approximately 48% year-to-date.
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Cambricon's Performance: Cambricon Technologies has seen a remarkable 111% increase in share value in 2025, driven by a staggering 4,347.8% year-over-year revenue growth and a turnaround from a significant net loss to a net profit of RMB 1.04 billion in H1 2025.
Investment Opportunities: U.S. investors can gain exposure to Cambricon and other STAR Market companies through the KraneShares SSE STAR Market 50 Index ETF (KSTR), which has also performed well, rising approximately 48% year-to-date.
Market Performance Overview
- S&P 500 and Dow Jones Gains: The S&P 500 achieved a 1.5% increase in August, marking its fourth consecutive month of gains, while the Dow Jones rose by 3.2%, also reflecting four months of growth. Notably, the S&P 500 reached a record high during this period.
- Nasdaq's Winning Streak: The Nasdaq Composite recorded a 1.6% gain, achieving its fifth consecutive monthly rise, the longest winning streak in over a year and a half.
Small-Cap Stocks and Inflation Concerns
- Russell 2000 Performance: Small-cap stocks, represented by the Russell 2000, surged approximately 7% in August, marking its fourth consecutive monthly gain and the strongest performance in over four years.
- Inflation Data Impact: Recent government data revealed that the core personal consumption expenditures price index rose by 2.9% in July, meeting estimates but higher than June's figures. This increase is concerning as it is the highest since February, raising worries about inflation remaining above the Federal Reserve's 2% target.
Consumer Sentiment and Fed Rate Cut Expectations
- Decline in Consumer Sentiment: Consumer sentiment fell to a three-month low in August, driven by concerns over tariffs and inflation, with respondents expecting faster inflation in the coming year.
- Rate Cut Speculations: Despite the inflation data, traders are pricing in an 86.4% chance of a quarter-point rate cut in September, indicating confidence that the Federal Reserve may ease monetary policy in response to a slowing labor market.
Tech Stocks Volatility and AI Bubble Concerns
- Tech Sector Pullback: The tech sector experienced volatility, particularly towards the end of August, with fears of an AI bubble. The Nasdaq Composite fell about 1.2% on the last day of the month, led by significant declines in major tech stocks.
- Notable Stock Movements: On August 29, NVIDIA shares dropped over 3.3%, Tesla fell 3.5%, Meta Platforms decreased by 1.7%, and Amazon.com saw a decline of over 1.1%.
Top Performing ETFs in August
- Roundhill Cannabis ETF (WEED): This ETF surged by 91.3% in August, driven by speculation regarding potential reclassification of marijuana by President Trump.
- Amplify Seymour Cannabis ETF (CNBS): It experienced an 83.2% increase, reflecting the broader cannabis market's growth.
- KraneShares SSE STAR Market 50 Index ETF (KSTR): This ETF rose by 29.7%, focusing on the largest companies on the SSE Science and Technology Innovation Board.
- Sprott Active Gold & Silver Miners ETF (GBUG): It gained 25.5%, targeting companies involved in gold and silver mining.
- VanEck ChiNext ETF (CNXT): This ETF increased by 25%, tracking the performance of major China A-share stocks.
- CoinShares Bitcoin Mining ETF (WGMI): It rose by 23.9%, providing exposure to companies engaged in bitcoin mining operations.
Conclusion
- The market showed resilience with notable gains across major indexes despite inflation concerns and a decline in consumer sentiment. The tech sector faced challenges, while specific ETFs, particularly in the cannabis and mining sectors, demonstrated significant growth.

Market Rebound and ETF Performance: ETFs with significant exposure to Chinese stocks surged due to stronger-than-expected manufacturing data and expectations of new stimulus from Beijing, helping to recover some losses from previous weeks amidst ongoing trade tensions with the U.S.
Focus on Alibaba and Economic Stimulus: Investors are closely watching upcoming "Two Sessions" meetings for potential economic stimulus announcements, with Alibaba Group being a key focus as it represents growth in China's tech sector and consumer spending trends.
Market Volatility and Economic Concerns: The past week saw increased market volatility driven by economic warning signals, including low junk bond spreads and trade tensions, while major stock movements were influenced by earnings reports and geopolitical developments.
Strong ETF Performances Amidst Turbulence: Despite the broader market instability, several ETFs such as UNG, KSTR, BDRY, REKT, and SMCX reported significant weekly gains, highlighting specific sectors like natural gas, Chinese tech stocks, and shipping that thrived amidst the chaos.







